PG&E stock price target cut to $8 from $29 at UBS

PG&E Corp. shareholder BlueMountain Capital Management LLC, said Thursday PG&E is "solvent," and therefore believes a bankruptcy filing would be damaging, avoidable and unnecessary. "There is overwhelming evidence that PG&E is solvent," BlueMountain said in a letter to PG&E's board of directors. "We simply cannot recall a situation where such a valuable company filed for bankruptcy with such blatant questions about the necessity to do so." PG&E said Monday it planned to file for bankruptcy on or about Jan. 29, citing mounting potential liability costs related to its role in the California wildfires. BlueMountain, a $5.5 billion asset manager that owned 4.3 million PG&E shares at the end of September, said a Chapter 11 filing would be an "utter abdication" of its duty to act in the best interest of the company and its shareholders. "It may appear easier for board members to file for Chapter 11--shifting the burden of dealing with the myriad issues that will face the Board and placing it squarely on the shoulders of the Bankruptcy Court and the companies' advisors--but it will destroy value for the company and in particular its shareholders--the only groups to which you owe a duty." PG&E's stock, which rose 6.7% in premarket trade, has plunged 86% over the past three months through Wednesday, while the S&P 500 has slipped 6.9%.

Jan. 17, 2019 at 7:33 a.m. ET

by Tomi Kilgore

BlueMountain sees PG&E bankruptcy while solvent is an 'utter abdication' of duty

BlueMountain sees PG&E bankruptcy while solvent is an 'utter abdication' of duty

PG&E's stock plunges 13% premarket after being removed from S&P 500

Teleflex Inc. , a single-use medical devices company, will replace PG&E Corp. in the S&P 500 effective Jan. 18, the S&P Dow Jones Indices announced Tuesday. The changes come as PG&E indicated its intention to file for Chapter 11 bankruptcy later this month and is no longer eligible for inclusion in the large-cap index. Meanwhile, Green Dot Corp. , a personal finance company, will take Teleflex's spot in the S&P MidCap 400 while Mercer International Inc. will replace Green Dot in the S&P SmallCap 600 ahead of Friday's opening.

Shares of PG&E Corp. hovered at their lowest in more than 15 years on Monday after news the utility is preparing to file for bankruptcy. The stock was down nearly 50% on the day and on track for the lowest close since October 2002. California's largest utility is facing more than $30 billion in liabilities related to the state's wildfires. Chief Executive Geisha Williams stepped down Sunday evening, with General Counsel John Simon made interim CEO. PG&E shares have lost 79% in the past 12 months.

Shares of PG&E Corp. plunged 49% in morning trade, to a more-than 16-year low, after the electric and natural gas utility announced a plan to file for bankruptcy on Jan. 29. The stock is trading at the lowest level seen since October 2012. The price decline was shaving about 7 points off the Dow Jones Utility Average , which was down 19 points, or 2.6%, with all 15 of its components losing ground. Meanwhile, the Dow Jones Industrial Average slumped 174 points, or 0.7%, with 28 of 30 components declining, and the Dow Jones Transportation Average lost 73 points, or 0.8%, with 16 of 20 components falling.

Shares of PG&E Corp. plummeted 55% in premarket trade Monday, after the gas and electric company said it plans to file for bankruptcy on or about Jan. 29, given the potential liabilities resulting the 2017 and 2018 Northern California wildfires. The utility said it didn't expect the bankruptcy to affect its electric or natural gas customers, and expects its employees to continue to be paid, as it expects to have $5.5 billion of committed debtor-in-possession financing. "During this process, the Company is also committed to continuing to make investments in system safety as it works with regulators, policymakers and other key stakeholders to consider a range of alternatives to provide for the safe delivery of natural gas and electric service for the long-term in an environment that continues to be challenged by climate change," PG&E said in a statement. The stock, on track to open at the lowest level seen during regular session trading hours since August 2002, has plunged 63% over the past three months through Friday, while the Dow Jones Utility Average has slipped 1.4% and the Dow Jones Industrial Average has lost 5.3%.

PG&E to file for Chapter 11 bankruptcy

PG&E Corp. Chief Executive Geisha Williams has stepped down, the largest California utility said in a statement Sunday night. Executive vice president and general counsel John Simon will take over as interim CEO while the board of directors searches for a replacement, the company said. PG&E shares have tumbled in recent months as it faces tens of billions of dollars in potential liabilities over devastating California wildfires its equipment has caused in recent years. ""While we are making progress as a company in safety and other areas, the board recognizes the tremendous challenges PG&E continues to face," PG&E Chairman Richard Kelly said in a statement Sunday. "Our search is focused on extensive operational and safety expertise, and the Board is committed to further change at PG&E." A number of top PG&E executives have left the company recently, and the state of California has discussed breaking up the utility. Earlier Sunday, Bloomberg News reported PG&E may notify its employees as soon as Monday of a possible bankruptcy filing. PG&E shares are down 26% so far this year, and down 60% over the past 12 months, compared to the S&P 500's 3.5% gain in 2019 and 6.8% decline over the past year.

BlueMountain Capital Management, a hedge fund with a significant stake in PG&E Corp. stock, has challenged the utility’s board over a plan to resort to bankruptcy to tackle wildfire damages that the utility estimates could run as high as $30 billion.

Utilities have long been considered ultrasafe bets. Some big investors are now learning that isn’t always true after they snapped up shares of California utility PG&E just before the deadly November wildfire started.

Worries about a downturn in the Chinese economy dragged stocks lower. The Dow Jones Industrial Average dropped 0.4% to 23,909.84. The S&P 500 fell 0.5% to 2582.61, and the Nasdaq Composite slumped 0.9% to 6905.92.

Friday was a positive day for the broad U.S. markets. Even though earnings season is just starting, it looks to be ramping up big after what was a dismal December. Crude oil posted a solid gain in the session. The S&P 500 sectors were almost entirely positive.

Thursday was a positive day for the broad U.S. markets. This was another solid day for the major exchanges, after starting out the day on a negative note. Even though earnings season is just starting, it looks to be ramping up big after what was a dismal December. Crude oil just traded sideways in the session. The S&P 500 sectors were entirely positive.

BlueMountain Capital Management, a hedge fund with a significant stake in PG&E Corp. stock, has challenged the utility’s board over a plan to resort to bankruptcy to tackle wildfire damages that the utility estimates could run as high as $30 billion.

The impending bankruptcy filing by PG&E has spooked investors in renewable energy yieldcos that are in danger of having contracts canceled. Morgan Stanley analysts offer insight into what might could happen.

Wildfire Recovery Attorneys Announce 250 New Plaintiffs File Suit
Against PG&E for Its Role in Causing Deadly Camp Fire

Dec. 12, 2018 at 9:59 a.m. ET

on BusinessWire - BZX

PG&E Corp.

PG&E Corp. is a holding company, which engages in generation, transmission, and distribution of electricity and natural gas to customers. The company was founded in 1995 and is headquartered in San Francisco, CA.
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